Clay Water Brick

"Give a man a fish and you feed him for a day; teach a man to fish and you feed him for a lifetime." This book challenges the traditional model of charity and reveals the entrepreneurial spirit as a powerful tool to fight poverty.

1. Traditional Charity Has Limits

Traditional charity often fails to provide long-term solutions to poverty. When people donate to charities, they rarely see how their money is used or understand the impact it has. While it fulfills immediate needs, it can discourage independence or leave recipients perpetually reliant on aid.

Through her volunteer work with various organizations, Jessica Jackley recognized a recurring issue. She felt that while most charities provided temporary relief, they often did not address the structural problems that kept communities impoverished. People repeatedly returned for help, indicating that the root causes of their struggles remained unresolved.

The author’s perspective shifted during her time in East Africa. Working with Village Enterprise, she realized that the people had ideas and aspirations for improving their lives but lacked the basic financial resources to bring these ideas to life. This encounter convinced her to explore alternative methods for fostering sustainable growth.

Examples

• Many charities focus on feeding or housing people instead of empowering them to build independent futures.
• Jackley's volunteer experiences left her feeling frustrated with the short-lived effects of her efforts.
• Village Enterprise's financial support revealed the entrepreneurial potential of budding business owners.

2. Microlending Empowers Communities

Microlending provides a practical way to fight poverty by offering small loans to entrepreneurs who lack access to traditional financial services. These loans allow individuals to start or grow small businesses, creating ripple effects in their communities.

The concept of microlending gained global attention through Dr. Muhammad Yunus and the Grameen Bank in Bangladesh. By granting low-interest loans to individuals in need, microlending has helped thousands of people launch ventures that would have otherwise been impossible due to a lack of capital.

Inspired by this model, Jackley co-founded Kiva, a platform that connects entrepreneurs in developing countries with lenders worldwide. Since its establishment, Kiva has helped entrepreneurs purchase much-needed tools, animals, or supplies for their businesses, creating pathways out of poverty for countless individuals.

Examples

• Grameen Bank and its microlending model made a transformative impact on Bangladeshi villages.
• Kiva revolutionized microlending by offering a global, person-to-person funding model.
• The platform has channeled over $600 million to aspiring entrepreneurs worldwide.

3. Resourcefulness Over Resources

Success doesn't always come from having plenty of resources but from using what's available creatively. Entrepreneurs in developing regions demonstrate this every day. They start with almost nothing but use ingenuity to build their businesses.

Patrick, an orphan from Uganda, started collecting clay to make and sell bricks. Despite his lack of tools, training, or financial backing, his persistence allowed him to improve his methods and grow a small business. Over time, he supported his younger brother and created jobs for others in his village.

Jackley’s experience founding Kiva mirrors Patrick’s story. Lacking formal business training, significant funds, or even contacts, she relied on her passion and hands-on learning. Together with her husband, she took small steps to develop a platform that would eventually grow beyond her expectations.

Examples

• Patrick turned natural clay into a successful business that fueled his community.
• Jackley and her husband started Kiva with just a basic website and minimal resources.
• Both stories highlight how a lack of capital doesn’t need to hinder entrepreneurial dreams.

4. Mission Matters Most

Businesses flourish when they stay focused on their core purpose. Clear goals keep entrepreneurs on track, even when distractions or tempting opportunities arise.

In the early days of Kiva, Jackley partnered with two entrepreneurs who wanted to scale their mutual project into something broader. However, their vision diverged from hers. They focused on profit and growth, which clashed with her mission of directly connecting lenders with entrepreneurs in need. Refusing to compromise her values, Jackley ended the partnership and kept Kiva’s original ethos intact.

The decision to stick to a clearly defined mission paid off. Kiva continued to grow and remained focused on empowering individuals rather than catering to external pressures or trends.

Examples

• Kiva dissolved a destabilizing partnership to preserve its mission.
• The founders prioritized long-term goals over short-term gains.
• Staying committed ensured Kiva's operations stayed true to its values.

5. Transparency Builds Trust

Openly sharing both triumphs and challenges builds loyalty and attracts supporters. In a world where success stories dominate, honesty about failures remains a powerful tool for connection.

When Kiva discovered that a partner organization in Uganda had embezzled over $100,000 in loans, it seemed disastrous. Instead of hiding the situation, the leadership decided to come clean. They informed lenders, explained what went wrong, and committed to better oversight moving forward. Rather than alienating users, Kiva’s honesty boosted trust and loyalty.

This transparent approach sets Kiva apart from many conventional charities, where donors rarely see detailed outcomes. Feedback and updates create deeper connections between lenders and the small businesses they fund.

Examples

• Kiva communicated openly with lenders about financial setbacks.
• Transparency reinforced trust and loyalty during Kiva's first major PR challenge.
• Sponsors value updates that offer a personal link to the businesses they support.

6. Teamwork Drives Growth

Entrepreneurship thrives when talents are pooled. A strong team can support a visionary founder, fill gaps in skills, and provide fresh ideas to move the mission forward.

Jackley initially hesitated to bring others fully into Kiva's work, viewing it as "her baby." However, as the platform grew rapidly, she realized the value of empowering her team to take responsibility. Each member brought unique expertise that allowed Kiva to reach new heights.

Another example of teamwork’s power is Clay, a candy store owner in Hawaii. He teamed up with his nephew Bronson, who introduced modern business strategies and coordinated a crowdfunding campaign. Together, they transformed the business into a thriving store with loyal customers.

Examples

• Kiva's team members contributed everything from branding to software development.
• Clay and Bronson’s teamwork revitalized their small family-run candy shop.
• Diverse skills and perspectives helped improve operational efficiency.

7. Iteration Leads to Excellence

Successful businesses aren’t built in one leap; they emerge from consistent effort and gradual refinement. Early mistakes and experimentation pave the way for long-term improvement.

Shona, a single mother from South Africa, began building assistive devices for her disabled child. Her crude initial designs evolved through trial and error into industry-leading products. Today, her company, Shonaquip, serves thousands of families and continues to refine its offerings.

Jackley also experienced iterative improvement while working on Kiva. The platform’s early version lacked professionalism, but feedback and tweaks allowed it to evolve, reaching millions of users and distributing millions of dollars in loans.

Examples

• Shona’s persistence led to a life-changing enterprise for disabled children.
• Kiva’s early, simple website paved the way for its modern, impactful platform.
• Years of refining business strategies contribute to sustainable growth.

8. Risk Brings Opportunity

Calculated risks open doors to new possibilities. Entrepreneurs often face critical moments where bold decisions lay the groundwork for future success.

In Uganda, Katherine risked her safety and finances to source fish directly from the lake, bypassing pricey middlemen. With her profits maximized, she built a thriving enterprise that wouldn’t have existed if she’d played it safe.

Jessica Jackley herself took major leaps in her journey. Ignoring her rejection from Stanford Business School, she chose to pursue her vision of creating Kiva. This fearless approach helped her overcome early obstacles and grow the platform into a global force.

Examples

• Katherine’s journey to the lake enabled sustainable profits for her fish-selling business.
• Jackley’s decision to move forward despite setbacks became the foundation of Kiva.
• Entrepreneurs everywhere must weigh risks to push their ventures forward.

9. Integrity Ensures Longevity

Staying true to principles—even under pressure—helps businesses thrive. Rather than taking shortcuts, integrity ensures consistent support from partners, customers, and collaborators.

Jackley modeled integrity when she handled Kiva’s early challenges with openness. Upholding honesty built trust and attracted long-term users. Similarly, by focusing on mission-driven microlending instead of prioritizing profit, Kiva differentiated itself from competitors.

Businesses with integrity inspire genuine loyalty, creating an enduring impact that resonates beyond short-term achievements.

Examples

• Kiva prioritized transparency and mission alignment in all decisions.
• Sponsors valued open communication and the organization’s socially-driven focus.
• Ethical business practices resonate deeply with supporters and partners alike.

Takeaways

1. Stay honest about mistakes with your team and supporters; trust is built on transparency.
2. Don’t wait for perfect conditions to start your venture—use what you have now to make progress.
3. Surround yourself with a supportive team to share the workload and inject fresh ideas into your project.